Amethyst has a standard variable overhead rate of $5 per direct
labour hour. The standard quantity of direct labour per unit of
production is 2 hours. The company's static budget was based on
50,000 units. Actual results for the year are as follows.
Actual units
produced 45,000
Actual direct labour
hours 100,000
Actual variable
overhead $495,000
The time has come for the company to compare of actual results
with planned results.
Required
What is the company’s (i) static budget and (ii)
flexible budget...